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American Capital Agency Corp. (AGNC)

  • Mon, Apr. 13, 4:55 PM
    • REITs typically face headwinds as monetary policy tightens thanks to the liability sensitivity of their balance sheets, says Wunderlich. Certain strategies can mitigate this, however, and some mREITs are doing a better job than others, meaning they could be buys even if rates move higher this year.
    • First is American Capital Agency (NASDAQ:AGNC), yielding 12.3% and trading at a sizable discount to what was stable book value as of the end of February.
    • Next is AG Mortgage Investment (NYSE:MITT) which has diversified its portfolio to include 45% credit-sensitive assets, i.e. not necessarily impacted by rates. MITT yields 12.7% and trades at a 6% discount to trailing book value.
    • Source: Barron's
  • Mon, Apr. 13, 4:04 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend, in line with previous.
    • Forward yield 12.23%
    • Payable May 8; for shareholders of record April 30; ex-div April 28.
  • Wed, Mar. 18, 2:30 PM
    • Worries about a sharply flatter yield curve abate just a bit as the FOMC drops "patient" from its policy statement - putting rate hikes on the table at subsequent meetings - but Fed economic projections send a dovish signal, with outlooks for economic growth, inflation, and the pace of rate hikes all cut from previous estimates.
    • Outperforming the averages: Annaly Capital (NLY +1.1%), American Capital Agency (AGNC +1.5%), Two Harbors (TWO +1.5%), CYS Investments (CYS +2%), Invesco (IVR +1.7%), Hatteras (HTS +1.7%), Capstead (CMO +2.1%), MFA Financial (MFA +1.7%), Anworth (ANH +2.2%), Dynex (DX +1.5%), Five Oaks (OAKS +3.3%).
    • Previously: FOMC drops "patient," but sends dovish signal (March 18)
  • Thu, Mar. 12, 4:45 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend, in line with previous.
    • Forward yield 12.56%
    • Payable April 10; for shareholders of record March 31; ex-div March 27.
  • Thu, Mar. 12, 4:23 PM
    • Estimated book value as of Feb. 28 is $25.79 per share, and includes the deduction of the $0.22 monthly dividend. Book value at January's end was $25.58. A $0.22 dividend has been declared for March as well.
    • Today's close of $21.02 puts the stock at an 18.5% discount to book.
    • Source: Press Release
    • AGNC +0.1% after hours
  • Tue, Mar. 10, 3:08 PM
    • With the averages having a tightening tantrum - the Dow down nearly 300 - money is cautiously flowing into some income plays, notably the REITs. The iShares U.S. Real Estate ETF (NYSEARCA:IYR) is flat on the session.
    • Among the larger caps: Simon Property (SPG +0.2%), General Growth (GGP +0.7%), Health Care REIT (HCN +0.9%), HCP (HCP +0.4%), Equity Residential (EQR +0.5%), AvalonBay (AVB +0.6%), Boston Properties (BXP +0.2%), American Capital Agency (AGNC +0.2%), Annaly Capital (NLY -0.8%)
    • Previously: Yields tumble alongside stocks (March 10)
  • Fri, Mar. 6, 10:21 AM
    • The 10-year Treasury yield has popped all the way to 2.24% (up 11 bps on the session) following the strong jobs report which saw 295K jobs added in February and the unemployment rate dropping to 5.5%.
    • Checking short-term interest rate futures, they're falling (meaning higher rates), but still not pricing in a rate hike until late summer.
    • Annaly Capital (NLY -1.3%), American Capital Agency (AGNC -0.6%), Two Harbors (TWO -1%), Armour (ARR -0.9%), Invesco (IVR -0.9%), CYS Investments (CYS -1.4%), Hatteras (HTS -1.1%), MFA Financial (MFA -1.1%), Western Asset (WMC -0.7%), Dynex (DX -1.2%), AG Mortgage (MITT -1.5%), Ellington Residential (EARN -1.1%).
    • Previously: Dollar and Treasury yields spike after strong jobs print (March 6)
  • Thu, Feb. 12, 4:26 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend, in line with previous.
    • Forward yield 12.14%
    • Payable March 6; for shareholders of record Feb. 27; ex-div Feb. 25.
  • Tue, Feb. 3, 3:52 PM
    • Unable to put any sort of positive move together even as interest rates tumbled this year, mREITs (REM +0.9%) are uniformly higher this session as the 10-year yield jumps 11 basis points to 1.78%.
    • American Capital Agency (AGNC +1.3%) reported better-than-hoped Q4 results last night, but has altered its mix of portfolio holdings and hedges to brace for what it expects will be a wave of prepayments. If rates keep this up, those prepayments may not materialize.
    • Annaly (NLY +1.1%), Chimera (CIM +1.5%), CYS Investments (CYS +1.3%), American Capital Mortgage (MTGE +1.8%), Hatteras (HTS +1.1%), MFA Financial (MFA +1.3%), Western Asset (WMC +1.8%), Dynex (DX +1.1%), Ellington Financial (EFC +1.2%).
  • Tue, Feb. 3, 11:43 AM
    • With the big declines in interest rates in late 2014 and thus far this year, American Capital Agency (AGNC +1.4%) has taken steps to protect its portfolio from what it expects will be a big rise in prepayments.
    • Webcast and prepayment slides
    • Among them is taking exposure to 30-year mortgages way down, with total face value at year-end of $14.7B vs. $23.2B three months earlier. Generics should exhibit the fastest prepayment speeds and they're now $5.1B vs. $13.2B the previous quarter. That money has gone into 15-year mortgages, where prepayments should be lower.
    • The hedging portfolio has also been significantly altered, with a portion of longer-dated swaps terminated, and shorted-dated swaps added. The company has also altered its Treasury holdings, buying the long end and selling short-dated paper. AGNC's 10-year Treasury position went from short $2.7B to long $2.4B by year-end.
    • Previously: American Capital agency beats, posts rise in book value (Feb. 2)
    • Previously: American Capital Agency beats by $0.11 (Feb. 2)
  • Mon, Feb. 2, 4:15 PM
    • Q4 net spread and dollar roll income of $0.92 per share vs. $0.85 in Q3. Quarterly dividend run rate was $0.66.
    • Net book value per share of $25.74 vs. $25.54 one quarter earlier. Today's close of $21.43 is a 16.7% discount to book.
    • Q4 economic return - dividends plus the change in book value - of 3.4% or 13.4% annualized. Full-year economic return of 18.5%.
    • CPR of 9% down 100 basis points from Q3. Net interest rate spread of 1.85% down five basis points.
    • "At risk" leverage of 6.9x vs. 6.7x in Q3.
    • Conference call tomorrow at 11 ET
    • Previously: American Capital Agency beats by $0.11 (Feb. 2)
    • AGNC flat after hours
  • Mon, Feb. 2, 4:05 PM
  • Mon, Feb. 2, 12:16 PM
    • Non-agency REITs likely fared best in Q4 says the team as credit assets outperformed and were in less need of hedging against higher rates. Two of note are outperform-rated Apollo Residential Mortgage Trust (AMTG -1.2%) and neutral-rated MFA Financial (MFA -1.7%).
    • Agency players, however, were more likely to have positioned themselves for higher rates and should see more limited boosts in book value. Two of note are Annaly Capital (NLY -1.3%) and Western Asset Management (WMC -0.1%) - both neutral-rated.
    • "While the Q4 rally in rates likely drove BVs higher than we previously assumed, in our view it only forestalls the drag from rising rates on future book value," says JPMorgan, cutting price targets on Annaly, American Capital Agency (AGNC -1%), Two Harbors (TWO -1%), Apollo Residential, and Western Asset.
    • Capstead Mortgage already reported its Q4 and results were uninspiring (book value actually slipped a bit).
    • Up after the bell tonight is American Capital Agency.
    • Previously: Credit Suisse downgrades three mortgage REITs (Feb. 2)
    | 1 Comment
  • Sun, Feb. 1, 5:35 PM
  • Wed, Jan. 28, 4:05 PM
    • The iShares Barclays MBS Bond Fund (MBB +0.2%) hit a new lifetime high, which should be good for the book values of mortgage REITs (assuming they weren't too hedged), but the yield curve continues to sharply flatten. The 10-year Treasury yield is all the way down to 1.71% and the 30-year at a record-low 2.29% - this as the Fed says it's on track for a mid-year rate hike.
    • In addition to shaving margins for leveraged holders of mortgages, the lower rates could result in another refinance wave, and thus a surge in prepayments.
    • Annaly Capital (NLY -1%), American Capital Agency (AGNC -1.6%), Armour Residential (ARR -0.7%), Hatteras Financial (HTS -0.7%), Western Asset (WMC -2.2%), Apollo Residential (AMTG -0.7%)
    • Previously: Bond yields slide after FOMC (Jan. 28)
    • Previously: FOMC: Still "patient," but rate hike remains on the way (Jan. 28)
  • Sat, Jan. 24, 8:25 AM
    • In a low-yield world, the newly launched iBillionaire High Dividend Index - which tracks the trading moves of 25 investing-savvy billionaire investors such as Stanley Druckenmiller, James Dinan and Nelson Peltz - actually lives up to its name with a dividend yield of 5.34%.
    • At 24%, the index has a high allocation of energy shares, including OXY, TRP, CNP, COP, BP, ATLS, CVI, WMB, APL, RIG and ARP.
    • Also worth noting is that the index contains some high-yielding mortgage REITs, an area most investors hate right now but where billionaires seem to find value; examples are NRF, AGNC and CIM.
    • No mutual fund or ETF tracks this index, but it offers a fishing pond of income investment ideas to research further.
    • The top 20 holdings: TLM, CVC, GM, TIME, AEE, D, STAY, KMI, TROX, EXC, STNG, PPL, IRM, PFE, KKR, KAR, F, MIC, LO, ABBV.
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Company Description
American Capital Agency Corp is a real estate investment trust that invests exclusively in residential mortgage pass-through securities and collateralized mortgage obligations on a leveraged basis.
Sector: Financial
Country: United States